MBK Partners is moving to sell Godiva Japan, the Japanese unit of the premium chocolate brand Godiva. MBK acquired Godiva's Asia-Pacific business for about 1 trillion won in 2019, but its financial structure subsequently deteriorated due to the COVID-19 pandemic and shifts in market trends.
MBK plans to sell its controlling stake in Godiva Japan, according to investment banking (IB) industry sources Tuesday. The firm recently agreed with local Japanese lenders to extend the maturity of its acquisition financing, which had originally been set for June this year. MBK had been required to repay a loan of 75 billion yen (about 717 billion won) to local banks including MUFG Bank and Sumitomo Mitsui Banking Corporation. The lender group extended the maturity by nine months to March next year, and MUFG Bank agreed to provide 5 billion yen (47.8 billion won) in the form of a senior loan.
"We plan to begin the sale process for Godiva Japan," an MBK official said. "We are not pursuing the sale as a condition of the acquisition financing extension."
According to last year's business report, Godiva Japan's borrowings stood at 75 billion yen, of which 60.5 billion yen was senior loans and about 14 billion yen was mezzanine financing. MUFG Bank holds 25 billion yen of the senior loans, while Sumitomo Mitsui Banking Corporation holds about 19 billion yen.
MBK acquired Godiva's Asia-Pacific division for about 1 trillion won from Yildiz Holding, Turkey's largest food company, in 2019. At the time, the plan was to aggressively expand premium store-centered outlets into cafes and others, and to grow revenue from around 40 billion yen by expanding operations in Korea and Australia. However, profitability worsened following COVID-19 and local consumption trends changed, and Godiva Japan posted a net loss of about 30 billion yen last year.
